Extractive Sector Transparency Measures Act

Extractive Sector Transparency Measures Act

The Extractive Sector Transparency Measures Act (“ESTMA”) was enacted in Canada on December 16, 2014, effective June 1, 2015. ESTMA is intended to increase transparency and deter corruption in the extractive sector. These rules require extractive entities listed on a Canadian stock exchange to disclose, on an annual basis, specific payments made to all governments, whether in Canada or abroad.

Under these rules, the Company will report payments totaling at least C$100,000 in any fiscal year to any payee at each level of government (municipal, county, state, provincial, or federal) relating to the commercial development of minerals in any one of these payment categories:

Taxes (other than sales taxes and payroll taxes);

Royalties;

Fees (including rental fees, entry fees and regulatory charges, as well as fees or other consideration for licences, permits or concessions);

Production entitlements;

Bonuses (including signature, discovery and production bonuses);

Dividends (other than dividends paid to payees as ordinary shareholders); and